New Delhi, July 22: The Ministry of Food Processing Industries is believed to have sought a review of the liquor policy, specifically with regard to bulk imports and creation of fresh capacity, while asking the government to examine allegations regarding Seagram's acquisition of Oceanic Distilleries. Seagram India's proposal to be allowed bulk imports and cash and carry wholesale trading, which is pending before the Foreign Investment Promotion Board, is believed to have been deferred pending enquiries into sale of Tropicana brand by it to PepsiCo and acquisition of Oceanic Distilleries, sources said here on Tuesday.

In the June 27 FIPB meeting, Ministry of Food Processing Industries said it was not in favour of Seagram being allowed permission for bulk imports since there is a ban on fresh capacity creation in the liquor sector.
"The allegation regarding takeover of Oceanic Distilleries without permission of the competent authority, production of liquor products in excess of licensed capacity, non-fulfilment of export obligation by maintaining foreign exchange neutrality etc. may be looked into before considering the present case of Seagram," the Ministry said in a letter.
"The overall policy regarding this sector may be reviewed," it added. Bureau Report